Growing Your SaaS Product Business

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Make decisions on how to grow your SaaS product business including how to:
-Measure growth and define success
-Identify common roadblocks to company growth
-Determine where to focus your efforts
-Refine company & product portfolio strategy and trade-offs
-Assess different potential opportunities

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Growing Your SaaS Product Business

  1. 1. Decisions You Must Make to Grow Your SaaS Product Business Originally Presented at Dreamforce ‘13 Founders Forum as “Cloud Business Fundamentals: 5 Rules to Live By” John Gibbon @johngibbon johngibbon.com
  2. 2. What growth? SaaS metrics   Revenue growth (recurring)   Product capabilities   Average revenue per customer   Cash   Churn / net promoter score   Customer adoption   Customer acquisition cost ratio   Market share / recognition   Profitability @johngibbon
  3. 3. Your roadblocks to disruptive growth?   Define   Design / develop   Partner   Market   Sell   Implement / support (photo from Arnoldit.com) How have they changed? @johngibbon
  4. 4. Iterative growth: obey the funnel   Define   Design / develop   Partner   Market   Sell   Implement / support @johngibbon
  5. 5. Growth strategy: Ansoff matrix Current Products New Products Current Markets Market Penetration Product Development New Markets Market Development @johngibbon
  6. 6. Where grow? Similar customers market penetration Bigger / small customers Products product development Services market development Industries / verticals Geographies @johngibbon
  7. 7. Is there an opportunity?   Customer pain? power?   Market big? growing? changing? Total market > total addressable market > your share @johngibbon
  8. 8. Assessing growth strategy   Where should you go?   Why will you be successful there?   How do we get there? @johngibbon
  9. 9. Spicy
  10. 10. And what opportunity (product) success metric?   Revenue   Market share   Competitive differentiation   New users   Increased usage   Increased NPS @johngibbon
  11. 11. Market Growth Rate Boston Consulting Group Growth Share Matrix 50%- Stars Invest 10%- Cash cows Question marks ? Accelerate a Few ? Divest Most Dogs Harvest 0% Liquidate 10x 0.5x 0.2x 0.1x 2x 1x Relative Market Share @johngibbon
  12. 12. What trade-off decisions should you be making?   Question marks vs. stars   Stars vs. cash cows   New market vs. existing market   Short term vs. long term revenue   Revenue vs. usage   Client A vs. client B @johngibbon
  13. 13. Thank You! @johngibbon
  14. 14. “SaaS Business Fundamentals” – Handout 1) Your Top Two Company ____________ (Growth Metrics) 1._________________________ 2._________________________ What needs to change? ____________________ What are next steps to create this change?____________________ 2) Your Top Two Obstacles to ___________ (Disruptive Growth) 1._________________________ 2._________________________ What needs to change? ____________________ What are next steps to create this change?____________________ 3) Your Best Two ____________ (Directions to Grow) 1._________________________ 2._________________________ What needs to change? ____________________ What are next steps to create this change?____________________ @johngibbon
  15. 15. “SaaS Business Fundamentals – Handout 4) (Pick One) Why This Opportunity & What _______________ ? (Success Metrics) 1._________________________ 2._________________________ What needs to change? ____________________ What are next steps to create this change?____________________ 5) Where Are Products in BCG Matrix and What ________________ Should Be Making? (Trade-off Decisions) 1._________________________ 2._________________________ What needs to change? ____________________ What are next steps to create this change?____________________ @johngibbon

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